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Crunch watch Dec 08: the auto industry in crisis

By Tim Pollard and Simon Stiel Motor Industry 31 December 2008 14:05 Wednesday 31 December 2008• GMAC, GM's finance arm, said it would immediately revise its criteria for providing loans, after the US government bail-out of the General's credit arm. It will now supply credit for anyone with a score of 621 or more on the Fico scale, the scale used to assess Amercian customers' creditworthiness (Financial Times)• The news means that 80% of US consumers would now qualify for a loan from GMAC – which should improve sales in the depressed US market (Detroit News)• Chrysler is being lambasted for taking out full-page adverts in the American national press thanking the nation for supporting its auto industry. But critics point out this is a fresh waste of bail-out resources, as pages in the Wall Street Journal – one of the titles in which the ad ran – reportedly cost up to $264,000.

Volkswagen to take over Porsche

VW now seem set to take control of Porsche Porsche need a way out of the hole they are in and VW is the best way out. The two warring side of the Piech family – owners of VW and Porsche – now appear ready to swallow hard and see the inevitable happen. But will it be so bad?

New Skoda Octavia vRS hatch & estate revealed

The 2013 Skoda Octavia vRS has been revealed (vRS hatch pictured) The Skoda Octavia vRS – the latest version of Skoda’s quick and appealing take on the VW Golf GTI – has been unveiled ahead of its debut at the Goodwood FoS in July, and it looks a cracker. Available as either a hatchback or estate – and as a diesel or a petrol – the Octavia vRS manages to repackage the Golf GTI and Golf GTD in to one Skoda, offering good performance (the vRS is a bit slower than the GTI to 62mph at 6.8 seconds but has a 2mph higher top speed), good looks and the promise of prices starting not much above £20k. The petrol vRS gets the Golf GTI’s 217bhp 2.0 litre TSI and the diesel vRS the 181bhp 2.0 litre TFI from the Golf GTD, both with a 6-speed manual gearbox as standard and a six-speed DSG as option, sports suspension, XDS differential, quicker steering and multi-link rear suspension.